Received from gopichand 38000 by cheque after deducting 5% cash discount. What is the journal?

Question

Answer

The amount given 38000 is after deducting cash discount....  The real price is 40000 and cash discount is rs 2000... The entry isBank A/c... Dr. 38000Disc allowed A/c ....dr 2000      To gopichand A/c... -          40000

Answer

Bank a/c Dr. 36,100discount allowed a/c1900 Dr. to gopichand a/c 38,000

Answer

Journal Entry for the Received Payment of INR 38,000

The journal entry for the received payment of INR 38,000 with a 5% cash discount can be made as follows:

Step 1: Identify the accounts involved in the transaction

The accounts involved in this transaction are:

- Cash/Bank Account (Debited)
- Discount Received Account (Credited)
- Sales Account (Credited)

Step 2: Determine the amount to be debited and credited for each account

- Cash/Bank Account: The full amount received by cheque is INR 38,000. Hence, the account will be debited for INR 38,000.
- Discount Received Account: A 5% cash discount is offered by the customer, which amounts to INR 1,900 (5% of INR 38,000). Hence, the Discount Received Account will be credited for INR 1,900.
- Sales Account: The total sale made to the customer is INR 38,000. As the customer paid the full amount after deducting the cash discount of INR 1,900, the Sales Account will be credited for INR 36,100 (INR 38,000 - INR 1,900).

Step 3: Make the journal entry

The journal entry for the received payment of INR 38,000 with a 5% cash discount will be as follows:

Cash/Bank Account Dr. INR 38,000
Discount Received Account Cr. INR 1,900
Sales Account Cr. INR 36,100

Explanation of the Journal Entry

- The Cash/Bank Account is debited because the company received INR 38,000 from the customer.
- The Discount Received Account is credited because the company received a cash discount of INR 1,900 from the customer.
- The Sales Account is credited because the company made a sale of INR 38,000 to the customer. However, the customer paid only INR 36,100 after deducting the cash discount of INR 1,900.

This journal entry helps in maintaining accurate records of the transactions made by the company and ensures that the financial statements are prepared correctly.

Answer

Bank a/c........... dr 36100discount allowed a/c ......... dr 1900
to gopichand a/c .......... 38000
bank is the reciever so its debit the discount allowed is debit as its a lossand gopichand is a giver so its credit! hope you got your doubt cleared and if not msg me in personal

Answer

Bank A/c.           Dr.    36100............Discount A/c.    Dr.       1900...........    To Gopichand's A/c.               38000

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On april 6th sold goods to anuradha for rs.10,00,00 on terms 10% trade discount and 5% cash discount if the payment is received within fifteen days. 80% of payment is received on 18th april by cheque. What is the journal entry and how?

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